The Euro is holding up rather impressively in the face of a lingering uncertainty off the Greek debt extension, as there appears to be several sticking points on the details of the extension. Holding back the Euro is fear of German labor issues and a decline in French Consumer prices overnight. News that Putin agrees to use his influence on Separatists might provide the Euro with some fresh lift but a partial risk-off vibe in equities and energies serves to limit the upside in the Euro early today. While soft US data might weaken the Dollar and provide some might support to the Euro, the world economy and the Euro really needs the US economy to strengthen in order to pull the euro zone out from under the drag of the current deflationary environment. Critical up-trend channel support in the March Euro today is seen at 1.1351 and that support level rises to 1.1366 on Friday.
Technical Outlook: Momentum studies are trending higher from mid-range, which should support a move higher if resistance levels are penetrated. The market’s short-term trend is positive on the close above the 9-day moving average. The market has a slightly positive tilt with the close over the swing pivot. The near-term upside target is at 114.7350. The next area of resistance is around 114.4600 and 114.7350, while 1st support hits today at 113.6400 and below there at 113.0950.